EUR/USD Daily Video, February 08, 2011

[nuzz]

tp

Hai Sive. i already short since yesterday at 5662. dont know where to put my tp. any suggestion :cute:

 

[Sive Morten]

Hi Sive

Could you please clarify in which cases of ABC moves you use Fib Expansion, and when - Fib Extension, for the TP (Take Profits) Projections levels.

And - what are the rules for those levels of price projection.

Thanks in advance.

Hi, Alf,
sorry for delay. I do not exactly understand the question.
In fact, Fib expansion uses, when you want to estimate possible targets of initial swing AB. Any target so as 0.618, 1.00, 1.618 could be used for placing T/P. But you should not choose target blindly. Look at the other moments. The major rule - take the most probable target. For example, if 0.618 target before Confluence resistance, and 1.0 above it, then it's logical to take 0.618, because it has higher probability been reached by the market.